Michigan Collection Agency Bond |
AmeriPro Surety Bonds | 844-589-9732
Collection Agencies – Michigan
As a condition of licensing, Michigan collection agencies are required to furnish LARA, the Michigan Department of Licensing and Regulatory Affairs, with evidence of having filed a surety bond.
AmeriPro Surety Bonds sources the best deal for the surety bond you require. We offer the collection agency bond for both first time collection agencies and renewal collection agencies.
Michigan Collection Agency Bond – The Amount Required
According to Section 339.907 of the Michigan legislature, the amount of your Michigan collection agency bond will be between $5,000, but no more than $50,000.
The amount of surety bond you need will be determined by LARA.
Not mentioned in the statues is the fact that collection agencies which engage in repossession of property must obtain a flat $10,000 surety bond.
The Cost and Duration of this Surety Bond
As someone who is engaged in the collection agency profession, you well understand the following:
The cost of your collection agency surety bond will be determined by the following factors:
- The amount of the surety bond that you require;
- Information provided by you on a short surety bond application;
- Your credit score.
As a broad general rule, a $5000 surety bond may cost as little as 2%, and a $50,000 surety bond may cost as little as about 1%; however, we emphasize that the amount you will pay will be determined by the above considerations, and may therefore vary.
Once issued, this surety bond is active for one year from the date of issuance.
Michigan Collection Agency Bond: Its Purpose
While you are required to purchase a collection agency bond as one of the conditions for licensing, its benefit is for the benefit of the consumer.
Specifically, the bond protects the consumer from a Michigan collection agency which:
- Has wrongfully taken money from a consumer;
- Or, rightfully has taken money from a consumer, but fails to remit or report the money taken.
The existence of the surety bond allows those consumers who can credibly demonstrate financial harm, to file a claim against your surety bond and to be compensated for loss.
As principal of the surety bond, were a claim paid against your bond, you would be liable to reimburse the surety for all costs and fees paid in the settlement of any claim amount.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court, and fiduciary bonds throughout Michigan.
Our agency also provides surety bonds nationwide.
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